Updated: Saturday October 15, 2016/AsSabt
Muharram 14, 1438/Sanivara
Asvina 23, 1938, at 12:34:43 AM
The Trade Organization Act, 2013
ACT No. II Of 2013
An Act to provide for the registration and regulation
of trade organizations
WHEREAS it is expedient to ensure
appropriate representation of all genders and business sectors at all levels in
trade organizations and that they play significant role in developing policy
framework for 'improving business environment and economic growth;
AND WHEREAS it is imperative to define
the purpose, role, responsibilities and operational framework including code of
corporate governance for trade organizations and for matters connected
therewith and incidental thereto;
It is enacted as follows:---
CHAPTER-I
PRELIMINARY
1. Short title, extent, application and commencement.___
(1) This Act may be called the Trade Organizations Act, 2013.
(2) It extends to the whole or
(3) It shall apply to trade
organizations whose objects and business are not confined to one province.
(4) it shall come into force at once.
2. Definitions.___
In this Act, unless there is anything repugnant in the subject or context,---
(a) “Administrator”
means an Administrator appointed under this Act;
(b) “articles”
mean the articles of association or a trade organisation;
(c) “district”
means an administrative district notified by the Provincial Governments from
time to time;
(d) “division”
means an administrative division notified by the Provincial Government from
time to time;
(e) “Executive
Committee” means the Board of Directors, the Managing Committee or any other
body, by whatever name called, of a registered trade organisation responsible
for the management or conduct of the affairs of such trade organisation;
(d) “existing
trade organisation” means an organisation licensed under the Trade
Organisations Ordinance, 1961(XLV of 1961);
(g) “licence” means a licence granted to a trade
organisation under section 3;
(h) “member
of the Executive Committee” includes a Director where the Executive Committee
is a Board of Directors and the Chairman, Senior Vice Chairman, Vice Chairman,
President, Senior Vice President and Vice President of a trade organisation
licensed under this Act;
(i) “member
of a trade organisation” means a firm and includes a proprietorship, an
association of persons, a partnership, a company or a multinational
corporation, engaged in trade, industry or services and enrolled as a member of
a trade organisation licensed under this Act;
(j) “memorandum”
means the memorandum and the articles of association of a trade organisation;
(k) “office
bearers” means President, Senior Vice President, VicePresident, Chairman,
Senior Vice-Chairman and Vice Chairman and trade organization;
(I) “Ordinance”
means the Companies Ordinance, 1984 (XLVII of 1984);
(m) “prescribed”
means prescribed by rules made under this Act;
(n) “register”
means the Register of Companies required to be kept under section 147 of the
Ordinance; .
(o) “registered
trade organisation” means a trade organisation registered under the Ordinance;
(p) “Regulator”
means Regulator of the Trade Organisations appointed by the Federal Government
and includes an officer empowered by the Federal Government to perform
functions of the Regulator under this Act;
(q) “repealed
ordinance” means the Trade Organizations Ordinance 1961 (XLV of 1961);
(r) “trade
organisation” means an organization, which
(i) is
capable of being formed as a limited company within meaning or the Ordinance;
(ii) is
formed or intended to be formed with the object of promoting any trade,
industry or service or any combination thereof;
(iii)
prohibits payment of any profits to its members; and
(iv) applies
its income and profits for achieving its objects;
(s) “small
traders and small business” means a member of trade organization whose number
of employees is less than twenty, annual business turnover ranges
between two million rupees to twenty million rupees, all utility bills do not
exceed one million rupees per annum and neither such small trader or small
business is owned or controlled by a Provincial Government nor it carries on
trade or business confined to only one Province; and
(t) “small industry” means
a member of trade organization which is a manufacturing concern having an
industry less than twenty employees, whose annual turnover ranges between two
million rupees to twenty million rupees, utility bills do not exceed one
million rupees per annum and is neither owned or controlled by a Provincial
Government nor carries on trade or business confined to only one Province.
3.
Licensing and registration of trade organisations.___ (1) Notwithstanding anything contained in the
Ordinance or in any other law for the time being in force relating to
registration of societies, bodies or associations of persons, no trade
organisation shall be registered under the Ordinance or such other law unless
it holds a licence granted by the Federal Government authorizing it to be so
registered.
(2) No
licence shall be granted for registration under the Ordinance to a trade organisation
unless it is,---
(a) a Federation of
Chambers of Commerce and Industry, organized on all Pakistan basis, to
represent Chambers and Associations referred to in clauses (b), (c), (d) and
(f):---
Provided that a licence
for registration as a Federation of Chambers of Commerce and Industry shall not
be granted to more than one trade organisation;
(b) a Chamber of Commerce
and Industry organized to represent trade, industry and services in a district.
Such a Chamber representing less than the prescribed number of persons shall
not be granted licence. Where the number of persons desiring to form a Chamber
is less than the prescribed number of persons, they may join a licensed Chamber
of the adjoining district:---
Provided that the
Federal Government may, by notification in official Gazette, combine one or
more districts for the purpose of grant of only one licence. In such a case the
Federal Government may allow the districts so combined to form it Town
Association under clause (e);
(c) a Women's Chamber of
Commerce and Industry organized to represent the women entrepreneurs engaged in
trade, industry or services in each administrative division but such a Chamber
representing less than the prescribed number of women entrepreneurs shall not
be granted licence and where the number of women entrepreneurs desiring to form
a Chamber is less than the prescribed number, they may join an adjoining
Women's Chamber of Commerce and industry:---
Provided that nothing
contained in this clause shall debar a woman entrepreneur to become member of a
Chamber in clause (b) if such woman entrepreneur otherwise fulfills the
criteria of membership of the respective chamber:---
Provided further that
nothing contained in this clause shall debar the required number of women
entrepreneurs to form district Women Chambers of Commerce if they otherwise
fulfill the criteria of formation a district chamber,
(d) an association with
membership on all
Provided that a licence
for registration as an all Pakistan association shall not be granted to more
than two trade organizations in the same sector, one of which must be an
organization representing small business, small traders or small industry:---
Provided further that
the question, whether a specific activity in trade, industry or service is an
independent sector or only a sub-sector, shall be determined by the Government,
whose decision in this respect shall be final;
(e) a Town Association,
organized to represent trade, industry and services ill a town, tehsil, taluka
or a district where there is no chamber and such Town Association shall be
affiliated with the Chamber of the concerned district:---
Provided that when a
town, tehsil or taluka is upgraded as a district or is granted licence under
clause (b), the Town Association in that town, tehsil, taluka or district shall
cease to exist with immediate effect; and
(f) a Chamber of Small
Traders organized to represent small businesses, small traders and small
industry, in each district, provided that they otherwise qualify to form a
chamber under this Act.
(3)
Notwithstanding the provisions of clause (b) and (d) of sub-section (2), where
the membership or a chamber in a district attains the minimum prescribed number
for grant of licence to a chamber under this Act, such persons shall be
entitled to form and apply far grant of licence as a chamber.
(4) On
grant of licence to a Chamber under sub-section (3), the firms and companies,
which had obtained membership in the Chamber of an adjoining district, shall be
deemed to have been de-registered from membership register of the adjoining
Chamber.
(5) Application
for grant of licence of a trade organisation shall be made to the Federal
Government in the prescribed application form.
(6) A
trade organisation shall be granted licence on such terms and subject to such
conditions as may be prescribed
(7) Licence
shall be granted to a trade organisation for a period or five
(8) A
track organisation holding a licence shall be registered under the Ordinance as
a company with limited liability without the addition of the word “limited” to
its name and on such registration shall enjoy all the privileges of a limited
company and be subject to all its obligations except those of,---
(a) using the word “limited”
as any part of its name;
(b) publishing its name;
and
(c) sending lists of
members to the registrar.
(9) The
Federal Government may, by notification in the official Gazette, grant
exemption to any trade organisation from any provision of this Act and such
exemption may be for such period and subject to such conditions as may be
specified in the notification:---
Provided
that no such exemption shall be granted to a trade organisation unless the
Federal Government is satisfied that it would be in the public interest to do
so.
4. Revocation of
licences of existing trade organisations.___ (1) Except as hereinafter provided and notwithstanding
anything in any other law or the time being in force and memorandum and
articles or association for any track organisation, any Licence granted under
section 3 of the repealed ordinance to an existing trade organisation shall
stand revoked with effect from the 30th December, 2006 and such trade
organisation shall be required to apply for grant or licence under this Act by
the date notified by the Federal Government:---
Provided
that revocation of Licence of a trade organisation shall not prevent its
members from assuming office, subject to section 11, consequent upon elections
under the repealed ordinance.
(2) The
Federal Government shall decide the application for grant of Licence within
such period or its filing as notified by the Federal Government.
(3) An
existing trade organisation which has applied for grant of licence within the
time notified by the Federal Government shall continue to function as a trade
organisation until the Federal Government decides its application for grant or
licence and until the first elections are held according to rules made under
this Act.
5. Privileges and
obligations of trade organisations.___(1) A licensed and registered trade organisation shall
be a body corporate with perpetual succession and a common seal and may sue and
be sued in its own name and, subject to and for the purposes or this Act, may
enter into contracts and may acquire, purchase, take, hold and enjoy movable
and immovable property of every description and may convey, assign, surrender,
yield up, charge, mortgage, demise, re-assign, transfer or otherwise dispose of
or deal with, any movable or immovable property or any interest vested in it,
upon such terms as it deems fit.
(2) The
liability or members of a licensed and registered trade organisation shall be
limited to their membership subscription.
(3) No
trade organisation other than a licensed and registered trade organisation
shall use in its name or title the word “Federation” or “Chamber” or “Association”
except an existing trade organisation which has applied for grant or licence
under this Act:---
Provided
that nothing in sub-section (3) shall apply to a company, association or body
or persons formed for promoting art, science, religion, charity, sports, any
profession other than trade, commerce, industry, service or any other subject
which the Government may, by notification in the official Gazette specify in
this behalf.
6. Renewal of licence. (1) A licensed trade
organisation shall require renewal of its licence every five years.
(2)
Application for renewal of licence shall be made to the Regulator ninety days
prior to the expiry of licence:---
Provided
that the Regulator, on sufficient cause being shown, by an order in writing,
may extend the period not exceeding thirty days.
(3)
Annual accounts and performance of a trade organisation shall be audited by a
firm of chartered accountants, and the reports thereof shall be submitted to
the Regulator along with the renewal, application.
(4) The
Regulator, on receipt of the application for renewal of licence, shall
endeavour to decide before the expiry of the licence.
7. Cancellation of licence and exemption. (1) The licence
granted to a trade organisation shall be cancelled by the federal Government,
where,---
(a) a trade organisation
fails to apply for renewal of the licence granted under section 3 of this Act
within the prescribed or extended period allowed by the Regulator;
(b) a trade organisation
fails to apply for membership of the Federation of Pakistan Chambers of
Commerce and Industry within one month or grant or licence;
(c) a trade organisation
fails to get registration under the Ordinance;
(d) a trade organisation
is found to be non-existent at the registered address or is non-operational;
(e) a trade organisation
is not holding elections or operating according to the provisions o f the
memorandum within the prescribed period;
(f) a trade organisation
is not complying with the orders and directions of the federal Government or
Regulator issued under this Act of the prescribed rules;
(g) a trade organisation
is not discharging statutory obligations as a limited company incurred under
the Ordinance;'
(h) a trade organisation
is not discharging statutory obligations under this Act or prescribed rules;
(i) a trade organisation
fails to pay the penalties imposed under thisAct within the prescribed period;
(j) the Federal Government
cancels any exemption granted to a trade organisation, under sub-section (9) of
section 3;
(k) the, trade
organisation is engaged in activities other than those for which it was
established;
(l) the trade organisation
has lost its representative character or its membership remains below the
prescribed threshold over a period of two years; and
(m) the financial or
performance audit report of a trade organisation states that-
(i) the income and profits
of the trade organisation arc spent for purposes other than those for which it
was established;
(ii) the trade organisation
does not remain financially viable.
(2)
Where the Federal Government intends to cancel the licence of a trade
organisation, granted under section 3 of this Act, it shall issue a show cause
notice to such trade organisation specifying the grounds for its intention to
cancel the licence and provide adequate opportunity of being heard before
deciding the matter.
(3) The
Federal Government shall notify, in the official Gazette, cancellation of
licence of a trade organisation.
(4)
Where the licence is cancelled on any ground mentioned in clause (d), (e), (f),
(g), (h), (i), (k), (I) and (rn) of sub-section (I) members of the trade
organisation concerned found responsible by the Federal Government for the
grounds of cancellation shall be debarred from sponsoring the proposal for
grant or licence or de novo .licence to a trade organisation or becoming member
of or holding any office of any trade organisation for a period not exceeding
three years.
(5)
Where the licence of a trade organisation has been cancelled under sub-section
(I) and a member or member of executive committee or employee of such trade
organisation continues to impersonate as member, member of executive committee
or employee of the trade organisation, such person shall be liable to penalties
under section 24.
8. Cancellation of
registration. (1) Notwithstanding
anything contained in the Ordinance or any other law for the time being in
force,---
(a) the registration of a
trade organisation under the Ordinance shall be deemed to have been cancelled
with immediate effect if the licence granted to such trade organisation has
been cancelled by the Federal Government under section 7;
(b) the registration of an
existing trade organisation shall stand cancelled with immediate effect if such
a trade organisation has failed to apply for grant of fresh licence within the
time notified by the Federal Government;
(c) the registration of an
existing trade organisation under the Ordinance shall stand cancelled on 1st
July, 2008, unless it has been granted licence by the Federal Government under
section 3.
(2) The
registrar shall strike off the register, and publish in the official gazette,
the names of all such trade organisations whose registration has ·been
cancelled under sub-section (1).
(3) All
affairs of a trade organisation whose registration stands cancelled under
sub-section (1) shall be wound up in a manner as determined by the Federal
Government.
9. Grant of licence de
novo. (1) Where licence of a
trade organisation is cancelled under section 7, the Federal Government may
consider grant of licence de novo after a period of one year from the date of
cancellation or licence:---
Provided
that where the licence of a trade organisation was cancelled under clause (a)
of sub-section (1) of section 7, the Federal Government may consider the grant
of licence de novo at an earlier date.
(2) The
trade organisation seeking licence under sub-section (1) shall be required to
make an application in such form and manner as may be prescribed.
10. Membership of trade
organisations. (1) Chambers and
sector specific associations on all
(2) Upon
an application by a trade organisation under sub-section (I), the Federation of
Pakistan Chambers of Commerce and Industry shall enroll such trade organisation
as its member within thirty days and where such an enrolment is not decided
within thirty days, the matter shall be referred to the Regulator alongwith the
reasons for not allowing enrolment and the Regulator shall decide the matter
within thirty days.
(3) A
chamber or an association which is a member of the Federation of Chambers of
Commerce and Industry shall be eligible to vote in the election of
office-bearers and committees of the Federation on completion of two years of
grant of licence:---
Provided
that the existing trade organisations, on grant of licence under this Act,
shall he deemed to be members of the Federation and shall be entitled to vote.
(4)
Proprietorships, associations of persons, partnerships, companies or
multinational corporations engaged in trade, industry or services shall he
entitled to enrolment as members of chambers and associations on fulfillment of
the prescribed conditions.
(5)
Notwithstanding anything contained in any other law for the time being in force
any person engaged in trade, industry or service, or any combination thereof,
shall be entitled to be enrolled as a member of a registered trade organisation
except where such person is otherwise disqualified for any of the reasons as
may be prescribed.
(6)
Where a person, qualified to be enrolled as a member of a trade organisation,
is refused enrolment or the enrolment is unduly delayed, on a complaint by the
aggrieved person, the Regulator may direct the trade organisation concerned to
enroll such person as a member on fulfillment of the prescribed requirements.
(7) New
members of the chambers and associations shall be eligible to vote on
completion of two years of their enrolment and payment of all dues:
Provided
that old members of the chambers and associations at the time of renewal of
membership which has been discontinued due to non payment of subscription dues
shall be eligible to vote on completion of one year of their re enrolment and
payment of all dues.
(8)
Except for the membership and office-bearers provided under this Act or
prescribed rules, there shall not be any other position by any nomenclature in
a trade organisation.
11. Organisation and
tenure of office-bearers and executive committee of trade organisations. (1) Notwithstanding
anything in any other law for the time being in force and memorandum and
articles of association of any existing trade organisation the tenure of
office-bearers of all trade organisations shall be one year,---
(a) in the case or the Federation of Pakistan Chambers of
Commerce and Industry from the 1st day of January to the 31st day of December;
(b) in the case of all other trade organisations, from the
1st day of October to the 31st day of September,
(2) The
organisational structure of trade organisations including composition and
tenure of Executive Committees and the manner of their elections shall be such
as prescribed.
12. Uniformity in
structure and autonomy of trade organizations.(1) The Federal
Government shall propose to and obtain approval from the Standing Committee on
Commerce in the National Assembly for a minimum, basic template of Memorandum
of all trade organisations to be registered under this Act;
(2) The
said template shall be in compliance with the Ordinance and shall ensure integrity,
transparency and efficiency in maintaining the roll of voting members, election
of office bearers, fiduciary responsibility and right of the individual members
of the trade organization.
(3)
After approval, the Federal Government shall publish in the official Gazette
the basic template of Memorandum for all trade organisations to be registered
under this Act;
(4)
Apart from adherence to the basic template, the registered trade organisations
shall be autonomous to make changes in its Memorandum in compliance with the
Ordinance.
13. The Regulator. (1) The Federal
Government may, by notification in the official Gazette, appoint or empower an
officer to perform functions of Regulator of Irade organisations under this
Act.
(2) The
Federal Government may appoint or empower such other officers with such
designations as it deems fit for performing under the superintendence and
direction of the Regulator, such functions of the Regulator, under this Act as
he may, from time to time, authorise them to discharge.
(3) The
Regulator may, by order in writing,---
(a) review any function,
matter, case or decision of any officer; or
(b) withdraw any function,
matter or case from any officer or staff and deal with such function, matter or
case himself either de novo or from the stage it was so withdrawn, or transfer
the same to another officer or staff at any stage.
14. Powers and
functions of the Regulator. (1) All acts and
proceedings of a registered trade organisation shall be subject to control of
the Federal Government and, subject to such control, the affairs of such trade
organisation shall be managed and conducted in such manner as the Regulator
may, from time to time, direct.
(2) the
Regulator shall, for the purpose of this Act, have the same powers as are
vested in a Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908)
in respect of the following matters, namely:---
(a) summoning and
enforcing attendance of any person and examining him on oath;
(b) compelling production
of documents;
(c) receiving evidence on
affidavit; and
(d) issuing commission for
examination of witnesses.
(3)
Notwithstanding anything contained in any law for the time being in force or in
the articles or memorandum of association of a registered trade organisation
and without prejudice to the generality of the foregoing provisions, the
Regulator shall exercise the powers to,---
(a) conduct enquiries into
the affairs of a trade organisation as may be necessary for the purposes of
this Act;
(b) inspect, with or
without prior notice, any office of such trade organisation including any of
its branch or regional, circle, zonal or liaison office, or any record or
document found therein;
(c) attend any meeting of
the general body or the Executive Committee of such trade organisation or of
any committee or other body set up or appointed to transact any business, or to
conduct any affair of such trade organisation;
(d) watch and supervise,
or cause to be watched and supervised, any election held by or for the purpose
of electing persons to the Executive Committee or other body including a
region, circle or zone of any such trade organisation; .
(e) act as a final forum
of appeals against the decisions of any person, committee or office-bearers of
a trade organisation in matters relating to electoral process before the
conduct of election; and
(f) annul the results of
any election held by any trade organisation if he is satisfied
(i) upon his own knowledge and after such investigation
he may think fit to make; or
(ii) upon a report made by
a person authorised by him to make investigation for the purpose; or
(iii) upon a complaint filed
by an aggrieved person in this behalf within thirty clays of the announcement
of the results of such election, that the irregularities in the conduct or such
election justify such annulment and, by order in writing, direct fresh election
to be held within such period as may be specified in the order;
(g) give directions to
persons or trade organisations in matters concerning this Act or any rules or
directive made thereunder;
(h) impose and collect
penalties and fines under section 25; and
(i) such other powers as
are provided by this Act.
15. Powers to enter and
search the premises. (1) The Regulator or
any officer authorized in this behalf may, for the purpose of making any
investigation, enter any premises, where the Regulator or such authorized
officer, as the case may be, has reasons to believe that any article, books of
account, computer hardware or software, data recording devices or other
document relating to the subject matter of investigation may be found and may,---
(a) search such premises
and inspect any article, books of account, computer hardware or software, data
recording devices or other document;
(b) take extracts or copies
of such articles, books of account or any software data;
(c) impound or seal such
books of account, computer hardware or software, data recording devices or
other documents; and
(d) make inventory of such
articles, books of account, computer hardware or software, data recording
devices or other documents round in such premises.
(2) All
searches made under sub-section (I) shall be carried out, mutatis mutandis, in
accordance with provisions of the Code of Criminal Procedure, 1898 (Act V of
1898).
(3) Before
taking any action under this section, the Regulator shall submit to the Federal
Government in writing the evidence and reasons for taking the said action.
16. Supersession of
Executive Committee, office-bearers and appointment of Administrator. (1) Where the Federal Government is in receipt of the
findings of an investigation by the Regulator, that the affairs of a registered
trade organisation are not being properly managed and that the interests of
trade, industry or service so require, it may, by order in writing, suspend or
supersede the Executive Committee of such trade organisation for such period,
not exceeding six months. as may be specified in the order:---
Provided
that no such order shall be made unless the Executive Committee, intended to be
suspended or superseded, has been given a notice in writing of and afforded an
opportunity to make a representation against, the intended supersession.
(2) Where,---
(a) an Executive Committee
is superseded under sub-section (1);
(b) in the opinion of the
Federal Government, it is not possible for any reason to reconstitute the
Executive Committee at the due time of such reconstitution; or
(c) the Executive Committee
is debarred by an order of any court, from discharging its functions, the
Federal Government may appoint, for such period, not exceeding six months, an
Administrator to take over functions of such Committee and to manage and
conduct affairs of the trade organisation:---
Provided that when the period of supersession is
terminated or the Executive Committee is reconstituted or the order of the
court is vacated before expiry of the period for which the Administrator shall
have been appointed, the Federal Government may direct the Administrator to
relinquish the functions taken over by him in favour of the Executive
Committee.
(3) Upon
appointment of an Administrator under clause (a) or clause (b) of sub-section
(2), the members of the Executive Committee shall be deemed to have vacated
their respective offices.
17. Administrator to
act under control of the Regulator. The Administrator shall manage and conduct affairs of
the trade organisation under supervision and control of the Regulator and in
accordance with the rules, if any, made in this behalf by the Federal
Government and, until such rules are made, in accordance with such directions
as the Regulator may, from time to time, give.
(2) the
rules and directions referred to in sub-section (1) may provided for,---
(a) the appointment of an
Advisory Committee consisting of persons selected from members of the trade
organisation to assist the Administrator in discharge of his functions;
(b) holding of elections
for the purpose of reconstitution of the Executive Committee at any time considered
appropriate before expiry of term of appointment of the Administrator;
(c) compliance with
provisions of the Ordinance to the extent applicable to the trade organisation
except those relating to laying of the income and expenditure account and
reading of the auditor's report in general meeting;
(d) withholding, during
the period of supersession of the Executive Committee, of the general meeting
of the trade organisation other than the meeting to hold elections for
reconstituting the Executive Committee;
(e) conduct of any
business, during the period the general meeting remains withheld, which
requires approval or assent of the members at a general meeting;
(f) the pay, allowances,
remuneration and other privileges, of the Administrator and members of the
advisory committee; and
(g) such other matters as
are necessary for efficient management of affairs of the trade organisation.
(3) Any
expenditure incurred in connection with management of a trade organisation by
the Administrator, including pay, allowances and remuneration of the
Administrator and members of the Advisory Committee, shall be met as expenses,
and be a charge on the income, of the trade organisation:---
Provided
that the Federal Government may allow remuneration, honorarium to and
re-imbursement of actual expenses incurred by the Administrator in connection
with performance of his functions to be met from the Trade Organisations Fund.
18. Restriction on
suits against trade organisations. Notwithstanding
anything contained in any law for the time being in force or in the articles or
memorandum of a registered trade organisation, no suit or other legal
proceedings relating to affairs of a trade organisation shall be instituted or
commenced in any court except High Court.
19. Compulsory
membership of trade organisations. (1) Notwithstanding
anything contained in any other law for the time being in force or in the
articles or memorandum of association of any trade organisation or other
company or in any agreement or other instrument, the Federal Government may,---
(a) subject to any rules
made in this behalf, by order in writing, direct any firm, company or other
concern engaged in any trade, commerce, industry or service to be a member of
registered trade organisation specified in the order; or
(b) if it considers
expedient in the interest of trade, commerce, industry, or service, by
notification in the official Gazette, direct all such firms, companies or
concerns or any class thereof engaged in trade, commerce, industry or service,
as may be specified in the notification subject to exception if any, to be
members of the registered trade organisation or organisations specified in this
behalf ill such notification.
(2) Upon
the issue of an order or Notification under sub-section (1), the registered
trade organisation concerned shall admit as its member any firm, company or
concern directed to be its member by such order or notification.
20.
Restriction on membership. (1) No person shall be
a member of more than such number.of trade organisations as the Federal
Government may, by notification in the official Gazette, specify in this
behalf.
(2) A
person convicted for any offence under this Act shall not hold, or be eligible
for holding, any office in a registered trade organisation unless a period of
live years has elapsed.
21. Appeal. (1) Any person or trade
organisation aggrieved by any decision or order of the Adrninistrator may,
within fourteen days of cornrnunication of such decision or order, prefer
appeal to the Regulator.
(2) Any
person or trade organisation aggrieved by any decision or order of the
Regulator may, within fourteen days of communication of such decision or order,
prefer appeal to the Federal Government whose decision, subject to sub section
(4), shall be final.
(3) On
appeal under sub-section (1) the Regulator or, as the case may be, under
sub-section (2) the Federal Government may suspend the operation or execution
of the decision or order appealed against until the disposal of such appeal.
(4) Any
person aggrieved by the final order or decision or the Federal Government,
involving-a question of law, may, within thirty days of such order or decision,
prefer appeal to the High Court.
22. Delegation of
powers. (1) The Federal
Government may, by notification in the official Gazette, direct that all or any
of its powers under this Act shall, in relation to such matters or subject to
such conditions as may be specified therein, also be exercisable by the
Regulator.
(2) The
Regulator may, by order in writing, authorise the Administrator or any other
officer to exercise and perform any of his powers and functions under this Act.
23. Federal Government
may carry out functions of the Regulator. Notwithstanding
anything contained in any other provision of this Act, the Federal Government
may, by notification in the official Gazette, direct that powers and functions
of the Regulator shall, under such circumstances or in such cases, as may be
specified in the notification, be exercised and performed by the Federal
Government and upon such notification reference to the Regulator in the
relevant provisions of this Act shall be construed as reference to the Federal
Government and such provisions shall have effect accordingly.
24. Power to levy fee
etc. The Federal Government
may levy and charge prescribed processing fee for grant of licence or renewal
or' licence to a trade organisation and for examining 'performance reports,
audited accounts and other documents submitted to the Federal Government or the
Regulator.
25. Penalty. Where a person
contravenes any provision of this Act or any rule or order made or any
direction or instruction given thereunder or obstructs any officer or person
acting under or in pursuance of any such provision, rule, order, direction or
instruction, shall be liable to penalty which may extend to one hundred
thousand rupees.
26. Contravention by
companies, etc. Where a person
contravening or .ailing to comply with, any provision of this Act or any rule,
order or direction made or issued thereunder is a company or other body corporate,
every managing director, director, manager, secretary or other officer or agent
thereof shall, unless he proves that the offence was committed without his
knowledge or that he exercised due diligence to prevent its commission, shall
be liable to the penalty as provided for such contravention or failure.
27. Trade Organisations
Fund. (1) There shall be
established a fund to be known as the Trade Organisations Fund which shall
consist of,---
(a) grants made by the
Federal Government and the Provincial Governments;
(b) fees and penalties
collected by the Regulator; and
(c) contributions from
local and foreign donors or agencies.
(2) The
Federal Government shall make rules and regulations for utilizing and incurring
expenditures from the Fund.
(3) For
the purpose of maintaining the Fund the Federal Government may open and
maintain accounts at such scheduled banks as it may from time to time
determine.
28. Presumption as to
orders. Where an order
purports to have been made or signed by an authority or person in exercise of
any power conferred by or under this Act. a court shall presume that such order
was so made by that authority or person.
29. Mode of recovery. Any sum imposed as
penalty under this Act shall be recoverable as an arrear of land revenue.
30. Indemnity. No suit, prosecution
or other legal proceedings shall lie against any person for anything which is,
in good faith, done or intended to be done in pursuance of this Act or any rule
or order made or any direction given thereunder.
31. Power to make
rules. The Federal Government
may, by notification in the official Gazette, make rules for carrying out
purposes of this Act.
32. Act to override
other laws. The provisions of this
Act shall have effect notwithstanding anything to the contrary contained in any
other law, for the time being in force.
33. Merger or trade
organisations. Notwithstanding
anything contained in any other law for the time being in force or provisions
contained in memorandum and articles or association of any trade organisation,
the Federal Government may, by notification in official Gazette, direct any
number of trade organisations to merge if each of' them is involved in the same
or significantly similar trade, industry or services or any combination
thereof:---
Provided that if two or more trade organisations are
involved in the same or significantly similar trade, industry or services or
any combination thereof, their merger shall be determined by the Federal
Government whose decision in this regard shall be final.
34. Transitional provisions.
(1) All existing trade organisations, before making application for grant of
licence under this Act, shall alter their memorandum and articles of'
association or any existing arrangement and shall take such other actions as
arc necessary to bring the constitution, working and procedures of the existing
trade organisations in conformity with provisions of this Act.
(2) Notwithstanding anything contained
in this Act, or any other law for the time being in force, or provisions
contained in the memorandum and articles of association of any trade
organisation, in order to bring the composition of the Federation of Pakistan
Chambers of Commerce and Industry, chambers and associations in conformity with
the provisions of this Act, the Federal Government may, within six months of
the commencement of this Act, pass any orders deemed appropriate for this
purpose. Such orders may include, but not limited to, extension of the tenure
of the office bearers and committees, or supersession of Executive Committee,
or appointment of administrator, or annulment of the elections of any trade
organisation including the Federation of Pakistan Chambers of Commerce and
Industry, held under the repealed ordinance or the order of the court.
Simultaneously, with the passing of such order, the Federal Government shall
issue schedule of election for the respective trade organisation.
35. Repeal and savings.
On commencement of this Act,---
(a) the
Trade Organisations Ordinance, 1961 (XLV or 1961), In its application to trade
organisations with objects and business not confined to one Province, shall
stand repealed with effect from the 30th December, 2006; and
(b) save as
otherwise expressly provided, nothing in this Act, or any repeal effected
thereby, shall affect or deemed to affect anything done, action taken,
investigation and proceedings commenced and orders, rules, regulations,
appointment, documents or agreements made, directions given, proceedings taken
and instruments executed or issued under or in pursuance of the repealed
ordinance and any such thing, action, investigation, proceedings, orders,
rules, regulations, appointments,deeds, documents, directions, proceedings
shall, if in force at the commencement of this Act and not inconsistent with
any of the provisions of this Act, continue to be in force and have effect as
if it were respectively done, taken, commenced, made, directed, given, executed
or issued under corresponding provision of this Act
36. Validation of actions etc.
Anything clone, actions taken, orders passed, instruments made, proceedings
initiated, processes or communications issued, powers conferred, assumed,
exercised by the Federal Government or Regulator on and after the 4th October,
2007 and before the commencement of this Act shall be deemed to have been
validly clone, made, issued, taken, initiated, conferred, assumed and exercised
and the provisions of this Act shall have, and shall be deemed always to have
had, effect accordingly.
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